Hyundai’s Ioniq 5 and 9, Kia’s EV6 and 9, and Genesis GV70 have been included in the tax credit eligibility list, enhancing their competitiveness in the U.S. EV market. However, there is a potential risk from a possible second Trump administration.
In an announcement made in Seoul, journalist Park Ki-beom reported that five electric vehicle models produced by Hyundai Motor Group in the U.S. are now eligible for government subsidies, allowing for a rebate of up to $7,500 per vehicle.
According to the industry and the U.S. Department of Energy, as of January 1, 2023, Hyundai’s Ioniq 5 and 9, and Kia’s EV6, EV9, and Genesis GV70 are eligible for the subsidy. This is the first time Hyundai and Kia models have been included in the subsidy list under the Inflation Reduction Act (IRA). Although Genesis GV70 was previously listed in 2023, it has not yet benefited from the subsidy.
The subsidy, under the IRA, provides a tax credit of up to $7,500 for complying with specific origin requirements for batteries and key minerals and for electric vehicles manufactured in the U.S.
Hyundai Motor Group has been producing these models at the Metaplant facility in Georgia and the Kia Georgia plant since late last year. The subsidy is expected to enhance Hyundai’s competitiveness in the American EV market. Previously, Hyundai leveraged a provision that offered a $7,500 tax credit for commercial EV leases, regardless of American production, to compete effectively in the U.S.
Hyundai Motor Group sold 112,566 electric vehicles in the U.S. from January to November this year, marking a 19.3% increase over the previous year.
However, there are concerns that the impact of these subsidies could be limited if a second Trump administration were to come into power. The Trump transition team is reportedly considering plans to abolish the EV tax credit under the IRA.